The following rant was inspired by a recent discussion I had with my former college colleagues in our past students WhatsApp group. As highly opinionated, seasoned armchair experts, there is no shortage of topics up for heated debate on any given Tuesday afternoon. One such topic came up recently when someone floated the idea that a government should run its operations as a well-managed ‘for-profit’ private sector organisation.

I promptly found my soap box.

The discourse surrounding ‘profitability’ in government agencies often raises concerns because it fundamentally misaligns with the core principles of governance. While business and governance share certain operational parallels-both involve management, resources and service delivery-their objectives and methodologies diverge in critical ways that directly impact society. Failing to distinguish these differences risks undermining the essence of what governments are meant to achieve.

Governments are designed to function on a stakeholder model, where the interests of all citizens are prioritised in policy formulation and implementation. This means governance must balance competing interests, address inequalities, and ensure resources are distributed fairly to enhance the common good. In this model, every citizen is effectively a stakeholder, regardless of their economic contribution or individual ‘share’ in the system.

Conversely, businesses operate on a shareholder model, where the primary goal is maximising profits for a specific group of individuals who own equity in the enterprise.

This profit-driven focus is achieved by prioritising efficiency, minimising costs, and generating maximum financial returns-objectives that, while valid in the private sector, are ill-suited to the public sector’s broader social mandate.

Governments are not designed to turn a profit but to provide services and ensure equitable development.

The conflation of governance with business often leads to flawed policies that prioritise fiscal outcomes over societal welfare. For example, efforts to achieve ‘profitability’ might involve cutting public services, privatising essential sectors, or prioritising short-term gains over long-term societal benefits.

Consider the scale of interests: a business aligns its operations to satisfy a few dozen shareholders, whereas a government must cater to millions of citizens with diverse and often conflicting needs. Attempting to apply profit-driven strategies to this stakeholder environment inherently disregards the complexities and nuances of governance.

The pursuit of profitability in government can create a cascade of negative societal impacts. Privatising state agencies often leads to job losses, particularly in unionised sectors where wages and benefits are more robust. These lost jobs contribute to a decline in household income, reducing families’ ability to invest in education and discretionary spending. Over time, this erodes the foundation of the local economy. Fewer university graduates and diminished household wealth translate into reduced local investment, shrinking economic activity, and rising unemployment.

While the short-term financial spreadsheets may show record profits for privatised entities, the long-term societal costs-lower living standards, weakened public services, and a less dynamic economy- are far more significant. These outcomes betray the fundamental responsibility of governments to serve their citizens’ collective interests.

It is easy for governments to sell the idea of profitability to citizens by drawing comparisons to personal finance, where overspending leads to debt. However, this analogy is misleading. Unlike households, governments operate on vastly different scales and have unique tools-such as monetary policy, taxation, and public borrowing-that allow them to manage deficits while pursuing long-term societal goals.

The emphasis should be on fiscal responsibility and efficiency, not profitability.

In conclusion, governments must resist the allure of framing their operations through the lens of business profitability. Their mandate is to foster equity, social development, and economic stability for all citizens.

When the pursuit of profit becomes the driving force behind government policy, it risks undermining the very principles of governance, leaving citizens to bear the long-term costs of short-sighted decisions. By focusing on service and societal well-being, governments can fulfil their true purpose-building a foundation for a just and prosperous society.

Yohance Boisselle

South Oropouche